Salary accounts include members that indicate how much employees make, how much they are paid, and modifying factors such as Status (Departed, for example), Salary Basis (Hourly, for example), or Pay Type (Exempt, for example).
Table 2. Annual Salary Calculation
Salary Basis | Pay Type | Salary Rate | Annual Salary |
|---|---|---|---|
Exempt | Amount the employee makes per hour | Multiply Salary Rate by the Number of hours worked per week, then multiply the result by 52 | |
Hourly | NonExempt | Amount the employee makes per hour | Multiply Salary Rate by the lesser of Number of hours worked per week or 40 hours, then multiply the result by 52 weeks |
Annual | NA (Pay Type is considered only for Hourly employees) | Amount the employee makes per year | Multiply Salary Rate by FTE |
Conceptually, the Employee Expenses member is calculated thus, using hypothetical rounded numbers:
Table 3. Model of Salary Calculations
Type of Value | Member Name | Example Amount |
|---|---|---|
Input | Salary Rate | 100,000 |
Input | FTE | 0.75 |
Calculated | Annual Salary Note: | 75,000 |
Input | Status | Maternity (65% = 48,000) |
Calculated | Salary | 4,000 (48,000 / 12) |
Input or Calculated | Merit Adjustment % | 5% |
Calculated | Merit | 200 (4,000 * 5%) |
Calculated | Adjusted Salary | 4,200 (4,000 + 200) |
Input or Calculated | Bonus % | 10% |
Calculated | Bonus (annual total, based on two 6-month bonuses) | 4,800 |
Calculated | Total Salary | 9,000 (4,200 + 4,800) |
Input | Health Plan | Family Plan |
Calculated | Health Care Cost | 300 |
Calculated | Total Compensation | 9,300 (9,000 + 300) |
Calculated | Taxes | 2,000 |
Calculated | Employee Expenses | 11,300 |
Planners input some of the values, and others Workforce Planning calculates. For values listed as Input or Calculated in the table, planners can accept the default value or override it. For example, planners can override the calculated Bonus % to reflect company policy.
Essbase calculates members in the order of the outline. If you move accounts in the outline, you must be careful about dependencies. Likewise, if you rewrite the logic for the Salary calculations, you may need to reorder the outline. For a list of expense members and the outline hierarchy, see Predefined Accounts.